Questions
Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2 Wiset...

Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Apr. 2 Purchased $15,800 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $5,600 (cost is $2,800).
3 Purchased $1,590 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
4 Issued Check No. 587 to World View for advertising expense, $850.
5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,300 (cost is $6,600).
6 Received an $70 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
9 Purchased $10,850 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $12,200 (cost is $6,800).
12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount.
13 Received payment from Page Alistair for the April 3 sale less the discount.
13 Sold $6,300 of merchandise on credit to Page Alistair (cost is $3,300), Invoice No. 763.
14 Received payment from Paula Kohr for the April 5 sale less the discount.
16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,200. Cashed the check and paid employees.
16 Cash sales for the first half of the month are $52,040 (cost is $44,400). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
17 Purchased $13,100 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
18 Borrowed $64,000 cash from First State Bank by signing a long-term note payable.
20 Received payment from Nic Nelson for the April 11 sale less the discount.
20 Purchased $1,160 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
23 Received a $900 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
23 Received payment from Page Alistair for the April 13 sale less the discount.
25 Purchased $11,775 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount.
27 Sold $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,690).
27 Sold $8,600 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,955).
30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,200.
30 Cash sales for the last half of the month are $72,500 (cost is $59,600).


Assume that Wiset Co. uses the perpetual inventory system.

     
Required:

1-a. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal.
1-b. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal.
1-c. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc.
4-a. Prepare a trial balance.
4-b. Prepare a schedule of accounts payable.

Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc. Prepare a trial balance. Prepare a schedule of accounts payable.

In: Accounting

The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016....

The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016. A review of the asset records has revealed the following information:

a. Asset A was purchased on July 1, 2014, for $40,000 and has been depreciated on the straight-line basis using an estimated life of six years and a residual value of $4,000.
b. Asset B was purchased on January 1, 2015, for $79,200. The straight-line method has been used for depreciation purposes. Originally, the estimated life of the asset was projected to be six years with a residual value of $7,200; however, at the beginning of 2016, the accountant learned that the remaining life of the asset was only three years with a residual value of $2,400.
c. Asset C was purchased on January 1, 2015, for $58,000. The double-declining-balance method has been used for depreciation purposes, with a four-year life and a residual value estimate of $5,000.

Required:

1. Assume that these assets represent pieces of equipment. Calculate the acquisition cost, accumulated depreciation, and book value of each asset as of December 31, 2016.
2. How would the assets appear on the balance sheet on December 31, 2016?
3. Assume that Becker Company sold Asset B on January 2, 2017, for $32,600. Calculate the amount of the resulting gain or loss and prepare the journal entry for the sale. Where would the gain or loss appear on the income statement?

The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016. A review of the asset records has revealed the following information:

a. Asset A was purchased on July 1, 2014, for $40,000 and has been depreciated on the straight-line basis using an estimated life of six years and a residual value of $4,000.
b. Asset B was purchased on January 1, 2015, for $79,200. The straight-line method has been used for depreciation purposes. Originally, the estimated life of the asset was projected to be six years with a residual value of $7,200; however, at the beginning of 2016, the accountant learned that the remaining life of the asset was only three years with a residual value of $2,400.
c. Asset C was purchased on January 1, 2015, for $58,000. The double-declining-balance method has been used for depreciation purposes, with a four-year life and a residual value estimate of $5,000.

Required:

1. Assume that these assets represent pieces of equipment. Calculate the acquisition cost, accumulated depreciation, and book value of each asset as of December 31, 2016.
2. How would the assets appear on the balance sheet on December 31, 2016?
3. Assume that Becker Company sold Asset B on January 2, 2017, for $32,600. Calculate the amount of the resulting gain or loss and prepare the journal entry for the sale. Where would the gain or loss appear on the income statement?

In: Accounting

13. Classifying Costs The following is a list of costs incurred by several businesses: Classify each...

13. Classifying Costs The following is a list of costs incurred by several businesses: Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to store raw materials and work in process d. Wages of production quality control personnel e. Oil lubricants for factory plant and equipment f. Depreciation of robot used to assemble a product g. Travel costs of marketing executives to annual sales meeting h. Depreciation of copying machines used by the Marketing Department i. Fees charged by collection agency on past-due customer accounts j. Electricity used to operate factory machinery k. Maintenance costs for factory equipment l. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reports m. Charitable contribution to United Fund n. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules o. Fees paid to lawn service for office grounds upkeep p. Cost of sewing machine needles used by a shirt manufacturer q. Cost of plastic for a telephone being manufactured r. Telephone charges by president’s office s. Cost of 30-second television commercial t. Surgeon’s fee for heart bypass surgery u. Depreciation of tools used in production v. Wages of a machine operator on the production line w. Salary of the vice president of manufacturing operations x. Factory janitorial supplies

In: Accounting

closing entries

closing entries

In: Accounting

Bank reconciliation and entries OBJ. 5 The cash account for American Medical Co. at April 30...

Bank reconciliation and entries OBJ. 5 The cash account for American Medical Co. at April 30 indicated a balance of $334,985.
The bank statement indicated a balance of $388,600 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $61,280.
b. A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement.
c. The bank collected $42,000 on a $40,000 note, including interest of $2,000.
d. A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
e. A check drawn for $240 had been erroneously charged by the bank as $420.
f.Bank service charges for April amounted to $145.

In: Accounting

JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant...

JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant and kitchen equipment, and cleaning supplies. On January 2, 2017, Just- Kitchens enters into a contract with a local restaurant chain to provide its services for 3 years at a cost of $10,000 per year. The restaurant chain pays the total contract fee on January 2, 2017. JustKitchens’s stand-alone selling price is also $10,000 per year.

After 2 years, the restaurant asks to modify the contract. On January 2, 2019, the companies agree to reduce the fee for the third year to $9,000 in exchange for extending the contract for 2 additional years at a fee of $11,000 per year. This modification is agreed to by both parties, and on that date the restaurant chain pays for the additional 2 years of service and deducts $1,000 for the adjustment to the original contract. The $11,000 fee for the additional years is the same as JustKitchens’s stand-alone price.

Required:
1. How should JustKitchens account for the contract modification?
2. Prepare the journal entries that JustKitchens would make over the life of the contract.
CHART OF ACCOUNTS
JustKitchens Inc.
General Ledger
ASSETS
111 Cash
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
181 Equipment
198 Accumulated Depreciation
LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Service Revenue
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
910 Income Tax Expense

How should JustKitchens account for the contract modification?

The contract modification should be accounted for with a cumulative catch-up adjustment or prospectively?

Prepare the journal entries that JustKitchens would make over the life of the contract. Assume all annual year-end entries are made on December 31. Additional Instruction

PAGE 2017 (4 Journal Entries) PAGE 2018 (2 Journal Entries) PAGE 2019 (4 Journal Entries) PAGE 2020 (2 Journal Entries) PAGE 2021 (2 Journal Entries)

2017PAGE

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

2018PAGE

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

PAGE 2019

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

PAGE 2020

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

PAGE 2021

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

In: Accounting

4) Using the key below, Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Capital stock...

4)

Using the key below,

Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Capital stock Retained earnings
1 2 3 4 5 6 7 8 9 10 11 12 13   14          15     16    

where should a corporation record depreciation on equipment?

15 and 10

9 and 16

7 and 16

15 and 8

5)

Using the key below,

Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Capital stock Retained earnings
1 2 3 4 5 6 7 8 9 10 11 12 13   14          15     16    

where should a corporation record paying for advertising for the period?

15 and 2

15 and 12

1 and 16

11 and 16

6)

Using the key below,

Cash Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Capital stock Retained earnings
1 2 3 4 5 6 7 8 9 10 11 12 13   14          15     16    

where should a corporation record paying for cash dividends?

15 and 2

13 and 12

1 and 16

13 and 2

In: Accounting

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the...

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:

Enlightner Foglighter
Sales volume in units 570 470
Unit sales price $ 300 $ 400
Unit variable cost 200 240
Unit contribution margin $ 100 $ 160

It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $125,000. Demand is high enough for either product to keep the plant operating at maximum capacity.

Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)

Multiple Choice

  • $383,459.

  • $213,089.

  • $401,237.

  • $339,489.

  • $1,040,391.

In: Accounting

The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net income...

The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net income for 2018 was $76 million.

SURMISE COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in millions)
2018 2017
Assets
Cash $ 22 $ 31
Accounts receivable 87 102
Less: Allowance for uncollectible accounts (23 ) (5 )
Prepaid expenses 18 14
Inventory 129 109
Long-term investment 122 85
Land 94 94
Buildings and equipment 386 260
Less: Accumulated depreciation (131 ) (104 )
Patent 23 25
$ 727 $ 611
Liabilities
Accounts payable $ 17 $ 38
Accrued liabilities 1 18
Notes payable 44 0
Lease liability 116 0
Bonds payable 62 126
Shareholders’ Equity
Common stock 67 50
Paid-in capital—excess of par 257 205
Retained earnings 163 174
$ 727 $ 611


Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2018. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $10 million are paid at January 1 of each year starting in 2018.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

In: Accounting

On January 1, 2018, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending...

On January 1, 2018, Nguyen Electronics leased equipment from Nevels Leasing for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Nevels. The equipment cost Nevels $839,368 and has an expected economic life of five years. Nevels expects the residual value at December 31, 2021, will be $115,000. Negotiations led to the lessee guaranteeing a $170,000 residual value.

Equal payments under the lease are $215,000 and are due on December 31 of each year with the first payment being made on December 31, 2018. Nguyen is aware that Nevels used a 5% interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)


Required:

1. Prepare the appropriate entries for both Nguyen and Nevels on January 1, 2018, to record the lease.
2. Prepare all appropriate entries for both Nguyen and Nevels on December 31, 2018, related to the lease.

In: Accounting

In your initial post, briefly research career opportunities that require knowledge or experience with managerial accounting....

In your initial post, briefly research career opportunities that require knowledge or experience with managerial accounting. List at least two potential positions (including a link to the job posting or job description) that you personally found to be interesting or surprising, and explain why they were noteworthy to you.

In: Accounting

The following financial statements apply to Benson Company: Year 4 Year 3 Revenues Net sales $...

The following financial statements apply to Benson Company:

Year 4 Year 3
Revenues
Net sales $ 211,000 $ 176,600
Other revenues 8,300 6,300
Total revenues 219,300 182,900
Expenses
Cost of goods sold 125,100 101,600
Selling expenses 20,700 18,700
General and administrative expenses 10,500 9,500
Interest expense 1,800 1,800
Income tax expense 19,000 16,600
Total expenses 177,100 148,200
Net income $ 42,200 $ 34,700
Assets
Current assets
Cash $ 4,500 $ 6,800
Marketable securities 3,000 3,000
Accounts receivable 35,700 30,600
Inventories 101,300 94,400
Prepaid expenses 4,800 3,800
Total current assets 149,300 138,600
Plant and equipment (net) 105,100 105,100
Intangibles 20,800 0
Total assets $ 275,200 $ 243,700
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable $ 38,600 $ 55,200
Other 15,200 15,700
Total current liabilities 53,800 70,900
Bonds payable 64,500 65,500
Total liabilities 118,300 136,400
Stockholders’ equity
Common stock (45,000 shares) 113,600 113,600
Retained earnings 43,300 (6,300 )
Total stockholders’ equity 156,900 107,300
Total liabilities and stockholders’ equity $ 275,200 $ 243,700


Required
Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet.

JUST NEED *****F-N*****

a. Net margin. (Round your answers to 2 decimal places.)
b. Return on investment. (Round your answers to 2 decimal places.)
c. Return on equity. (Round your answers to 2 decimal places.)
d. Earnings per share. (Round your answers to 2 decimal places.)
e. Price-earnings ratio (market prices at the end of Year 3 and Year 4 were $5.96 and $4.80, respectively).(Round your intermediate calculations and final answers to 2 decimal places.)
f. Book value per share of common stock. (Round your answers to 2 decimal places.)
g. Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.)
h. Working capital.
i. Current ratio. (Round your answers to 2 decimal places.)
j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.)
k. Accounts receivable turnover. (Round your answers to 2 decimal places.)
l. Inventory turnover. (Round your answers to 2 decimal places.)
m. Debt-to-equity ratio. (Round your answers to 2 decimal places.)
n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)

year4 year3
a net margin
b return on investment
c return on equity
d earnings per share
e price earnings ratio
f book value
g interest earned
h working capital
i current ratio
j quick (acid test) ratio
k accounts receivable turnover
l inventory turnover
m debt to equity ratio
n debt to assets ratio

In: Accounting

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate...

Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional results.

Division
I II III IV
Sales $250,000 $198,000 $496,000 $443,000
Cost of goods sold 205,000 189,000 297,000 255,000
Selling and administrative expenses 70,000 63,000 61,000 54,000
Income (loss) from operations $ (25,000) $ (54,000) $138,000 $134,000


Analysis reveals the following percentages of variable costs in each division.

I II III IV
Cost of goods sold 69 % 89 % 80 % 74 %
Selling and administrative expenses 37 61 51 58


Discontinuance of any division would save 50% of the fixed costs and expenses for that division.

Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued.

(a)

Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Division I Division II
Contribution margin $ $

b

) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

C)Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

D) Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

In: Accounting

Write historical background, structure, functions, features, advantages of following international financial institutions IMF WB SBP OIC...

Write historical background, structure, functions, features, advantages of following international financial institutions
IMF
WB
SBP
OIC
SAARC

In: Accounting

"Please can I get a feedback on this discussion post below" Can I get it in...

"Please can I get a feedback on this discussion post below" Can I get it in 2 hours please .thanks

Tesla is a company recently in the news for a conflict of interest between the SEC and the CEO Elon Musk due to an interest to bring the company private by the CEO who shared on Twitter his short term plans. Production issues, a number of layoffs and the increasing demand for the electric vehicles were expressed by the CEO as reasons to bring the company private that would allow the company to restructure its company internally. The company has since rescinded its position remaining as a public company. The SEC stated that it was swaying investors by stating that the company would do so when it reached a stock price of $420 forcing investors to make a decision or artificially driving the stock price to the sale price in order to bring the company private faster. Elon Musk has previously tweeted about its stock price in terms of its standing in the market however this is the first where the market has reacted to his tweets negatively. Possible solutions to the situation would be to address investors by other measures in addition to Twitter. Twitter being a social network for CEO’s to interact with customers and investors directly however a more formal approach might have been ideal in this situation.

In: Accounting